The board of directors of the Huisen Household International Group Limited announced that on 24 January 2022, the Company has entered into a strategic cooperation agreement (the ``Strategic Cooperation Agreement'') with Netjoy Holdings Limited. Under the Strategic Cooperation Agreement, the Group shall engage Netjoy for, among others, the provision of short video online marketing solutions for the promotion of the Group's smart home products and the provision of big data management and analysis for improving and optimizing the efficiency of marketing and advertising campaign of the Group. In addition, the Group and Netjoy shall jointly cooperate for the development of a cloud-based virtual reality smart home project based on Metaverse, including but not limited to developing virtual reality exhibition hall for consumers' interactive experience, live broadcast sales by artificial intelligence (``AI'') sales anchor and promotion and sales of the smart home products of the Group through the application of AI technologies.

It is one of the Group's business strategies to focus on the research and development of smart home products under its own brands. Leveraging on Netjoy's big data analytic and AI capabilities, the Board believes that the strategic cooperation can assist the Group in generating brand awareness of the Group and its smart home products to to-B and to-C markets through different marketing and advertising campaigns and innovative means, which can in turn increase the Group's market shares of the smart home products in China, as well as raising the brand awareness and reputation of the Group.